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Amazon.com Inc rebounded from recent quarterly losses and reported results above expectations during the last three months of 2014, boosted by strong Prime user growth.

The e-commerce giant stated net income of $214 million for the three months ended December 31, following losses of $126 million and $437 million reported for the two previous quarters of 2014.

Earnings per share stood at $0.45, up from Wall Streets expectations of $0.17 a share, but slightly down when compared to the $0.51 per share reported in the last quarter of 2013.

However, sales came in slightly below projections of $29.7 billion at $29.3 billion, up 15% compared year-on-year.

The internet giant benefited from increased demand for its services in North America, with sales increasing 22% to $18.75 billion, while international sales climbed only 3% in the quarter.

Worldwide paid membership jumped 53%, the company said, including a 50% growth rate in the US. Amazons Prime members, who benefit from a free two-day shipping service and unlimited audio and video streaming, are extremely important for the company as they tend to shop more frequently and spent more on items.

Amazon has a history of pouring a lot of funds into new devices and services or improving the already existing ones. Through last year the company launched a one-hour delivery in Manhattan and its “Echo” personal assistant, while also continued to expand its video content in order to deliver better experience for its Prime customers.

For the fourth quarter Amazon reported technology and content expenses of $2.64 billion compared to the $1.86 billion it stated during the fourth quarter of 2013. The company also spent more on marketing and fulfillment, bringing the overall operating expenses at $28.74 billion.

Amazons cloud computing business also contributed to performance. Amazon Web Services will also be included in future financial reports starting this April, when the company is due to release its 2014 Q1 results.

Gross margin for the quarter climbed to 29.5% for 26.5% a year earlier.

Overall, Amazon reported full-year loss of $241 million, with a revenue of $89 billion accompanied by a 20% increase in operating expenses to $88.8 billion.

“Prime is a one-of-a-kind, all-you-can-eat, physical-digital hybrid — in 2014 alone we paid billions of dollars for Prime shipping and invested $1.3 billion in Prime Instant Video. We’ll continue to work hard for our Prime members,” said Chief Executive Jeff Bezos.

Amazon.com Inc increased 2.59% on Thursday and closed at $311.78 on the NASDAQ, marking a one-year decrease of 18.85%. The company is valued at $140.71 billion. Following the release of the statement, the stock edged up 11.10% to $346.39 during pre-market trading.

According to CNN Money, the 36 analysts offering 12-month price forecasts for Amazon have a median target of $350.00, with a high estimate of $450.00 and a low estimate of $296.00. The median estimate represents a 12.26% increase from the last close price.

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